Digital services more expensive for the Belgian consumer

Digital services more expensive for the Belgian consumer

From the 1st of January, Belgian consumers who buy digital products (music, applications, Ebooks, films, video games online) will pay their VAT in Belgium. It will no longer be paid in the country their service provider is based in, which is nearly always Luxemburg. VAT will go from 15% to 21%, said Le Soir on Wednesday. This change was imposed by Europe to avoid unfair competition between countries, caused by tax levels. Luxemburg had been the only one to benefit, taking VAT on products away from other countries.

It is not known how much this measure will bring into Belgium. The increase in VAT for cosmetic surgery and digital trade, as well as a limit on tax rebates for renovating houses that are more than 10 years old, should bring in 10 million euros.

Most e-commerce sites have decided to pass on the whole of the tax increase to the Belgian consumer.

(Source: Belga)


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